The ICE Dollar Index, which tracks the greenback against a basket of other currencies, gains 0.3% and is hovering close to its highest level in a year.
The global energy crunch is threatening to also take a toll on base metals demand, said TD Securities. Higher power prices are likely to crimp industrial activity, reducing metals demand, the bank said.
"A cold winter could particularly dent the production of goods, ahead of a busy shopping season, threatening to intensify the manufacturing slowdown in both China and Europe," TD said.
EMEA HEADLINES
Tesco Raises FY Guidance, Launches GBP500 Mln Share Buyback
Tesco PLC on Wednesday raised guidance for the fiscal year after a strong first half, and said that it is starting a share-buyback program.
The company said that its sales and profit increased ahead of expectations in the first half ended Aug. 28, outperforming the market, and upgraded its adjusted retail operating profit guidance to 2.5 billion pounds-2.6 billion pounds ($3.41 billion-$3.54 billion) for the year ending in February 2022. The Tesco Bank business is expected to deliver an adjusted operating profit of at least GBP120 million.
TUI 3Q Revenue Rose; Summer and Winter Pipeline Strong
TUI AG said Wednesday that revenue for the third quarter of fiscal 2021 rose significantly when compared with the previous quarter, and added that it intends to raise proceeds of around 1.1 billion euros ($1.28 billion) via a discounted share placing to reduce its debt position.
The London-listed company said that third-quarter revenue rose to EUR650 million from EUR248 million for the previous quarter, driven by higher levels of markets and airline passengers.
German Manufacturing Orders Dropped More Than Expected in August
German manufacturing orders fell more than expected in August, after a strong increase in July.
Manufacturing orders declined 7.7% on month in August in adjusted terms, following a revised 4.9% increase in July, according to data from federal statistics office Destatis released Wednesday.
Eurozone Retail Sales in August Rose by Less Than Expected
Eurozone retail sales increased in August following a decline in July, the European Union's statistics agency Eurostat said Wednesday.
The volume of retail sales rose 0.3% over the previous month in August, while in July it fell by a downwardly revised 2.6%, Eurostat said. Economists polled by The Wall Street Journal had forecast a 0.8% rise for August.
Imperial Brands Says FY 2021 Net Revenue Grew Around 1%
Imperial Brands PLC said Wednesday that it expects to report that fiscal 2021 net revenue brew by around 1% on an organic, constant-currency basis, and that this is driven by a continued strong pricing in tobacco.
The FTSE 100-listed tobacco company--which houses the Davidoff, Gauloises and JPS cigarette brands as well as a number of vapor and heated-tobacco products--said that for the year ended Sept. 30 it expects to report adjusted organic operating profit growth in line with the board's guidance of low to mid-single digit constant-currency growth. The company said that this will reflect the significantly reduced losses in Next Generation Products, or NGP, and an increased distribution profit.
Bang & Olufsen Backs Guidance After Swinging to 1Q Net Profit
Bang & Olufsen AS on Wednesday backed its full-year guidance after swinging to a small fiscal first-quarter net profit on cost cuts and higher demand across all regions and products.
The Danish consumer electronics company posted a net profit of 1 million Danish kroner ($156,000) for the three months to Aug. 31 compared with a loss of DKK49 million a year earlier.
Saint-Gobain Sets New Targets, EUR2B Buyback Program, Dividend Policy to 2025
Compagnie de Saint-Gobain SA on Wednesday unveiled targets to 2025 as it launched a new strategic program.
The French construction company said that from 2021 to 2025 it is targeting annual organic-sales growth of 3% to 5% and an operating margin of between 9% and 11%.
Volvo Trucks Gets Order for 100 Electric Trucks From DFDS
Volvo AB said Wednesday it has received an order for 100 electric trucks from Danish shipping and logistics company DFDS A/S.
The Swedish truck maker said the deal is the largest commercial order to date for Volvo electric trucks, and one of the largest ever for heavy electric trucks world-wide.
Talking Markets: Russia Seen as Pressuring Europe with Limited Gas Supplies
Russia has limited gas supplies to Europe as the continent grapples with a surge in prices, leading to concerns that the Kremlin is exploiting its status as the region's biggest supplier to push for swifter approval of the Nord Stream 2 pipeline, some analysts say.
Russian state-controlled gas giant Gazprom PJSC opted this month not to book additional export capacity to Europe through Ukraine and has also secured just a third of the capacity available to it on the Yamal-Europe gas pipeline that runs through Poland.
Climate Change Is Melting Russia's Permafrost-and Challenging Its Oil Economy
YAKUTSK, Russia-Thawing earth once thought to be permanently frozen is springing to life and threatening a crucial chunk of Russia's economy.
GLOBAL NEWS
Rising Bond Yields, Falling Industrial Demand Behind Slumping Silver Prices
Silver is sliding at its fastest pace in years.
Prices just wrapped up their worst four-month stretch since November 2014, dragged down by expectations for higher interest rates and a slowdown in manufacturing activity. Front-month silver futures have fallen more than 21% in that period to around $22 a troy ounce.
Biden Backs Powell After Sen. Elizabeth Warren Intensifies Opposition
President Biden said he has confidence in Federal Reserve Chairman Jerome Powell after Sen. Elizabeth Warren (D., Mass.) on Tuesday escalated her criticism of the central bank's leader.
"Thus far, yes," Mr. Biden said when asked by a reporter during a trip to Michigan if he had confidence in Mr. Powell. "But I'm just catching up to some of these assertions," he said, referring to senior officials' trading activities that sparked Ms. Warren's most recent volley of disapproval.
Builders Hunt for Alternatives to Materials in Short Supply
Shortages of key construction materials are forcing some builders and contractors to turn to substitutes and hunt for alternative suppliers as they rush to meet high demand for new housing.
Construction companies are looking for replacements and new sources for everything from wood paneling to ceiling joists to pipes, saying that potentially higher costs and added complications to design and construction can be preferable to putting a project on hold for months while waiting for planned supplies.
Wine Deal Making Surges as Investors Look Past Covid-19 Woes
Deal makers have targeted the wine industry, as investors bet on rising prices for winery acreage despite a Covid-19 hit to demand for the beverage.
Deals by private-equity funds to invest in wineries, vineyards and distributors have risen 75% in 2021 so far, compared with last year, according to Refinitiv. There has also been a jump in mergers and acquisitions, with companies spending $8.1 billion this year to snap up wine-related firms, compared with $1.8 billion last year, Pitchbook data showed.
New Zealand Raises Interest Rates as Inflation, Housing Pressures Build
WELLINGTON, New Zealand-New Zealand largely kept out Covid-19 by closing to the outside world, a policy accompanied by stimulus to keep the economy moving. Now the resulting labor shortages and surging demand, notably for housing, have led it to become one of the first developed economies to raise interest rates since the pandemic began.
The Reserve Bank of New Zealand lifted its benchmark rate to 0.5% from a record-low 0.25% and signaled more increases over the next year, as it seeks to tame inflation stoked by higher oil prices, rising transport costs and supply-chain disruptions. It said the increase would also drive up mortgage rates and so help cool house prices, up about 30% over the past year.
Glynn's Take: Australian Banking Regulator Will Need to Do More to Cool Housing Market
SYDNEY-Australia's banking regulator on Wednesday took its first steps to tame the country's surging house prices, but more prudential fire power may be needed in the coming months to cool the market even further.
The Australian Prudential Regulation Authority tightened the mortgage serviceability criteria, a measure that will push some borrowers out of the market, especially those borrowing at the very limits of what their income will allow.
Biden Backs Powell After Sen. Elizabeth Warren Intensifies Opposition
President Biden said he has confidence in Federal Reserve Chairman Jerome Powell after Sen. Elizabeth Warren (D., Mass.) on Tuesday escalated her criticism of the central bank's leader.
"Thus far, yes," Mr. Biden said when asked by a reporter during a trip to Michigan if he had confidence in Mr. Powell. "But I'm just catching up to some of these assertions," he said, referring to senior officials' trading activities that sparked Ms. Warren's most recent volley of disapproval.
Democrats Wrangle Over How to Shrink $3.5 Trillion Proposal
WASHINGTON-Democrats wrestled Tuesday with how to squeeze their wish list of programs and tax changes into a social policy and climate package whose size and scope centrists in the party are willing to support.
President Biden acknowledged in a series of meetings with Democrats this week and on Friday that a package once pegged at $3.5 trillion would have to be smaller, given opposition from centrist Senate Democrats to a bill of that magnitude. Now, they are grappling with the tougher next step: deciding exactly how much narrower-and which of-their proposed child care, education or health programs would have to get trimmed or culled.
(MORE TO FOLLOW) Dow Jones Newswires
10-06-21 0631ET
